Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.

 

 

May Question and Answer Section

Arrow

 

Newsletter issue - May 2013.

Q. My company has been trading since 1 March 2013, but my first sales invoices haven't been paid yet, so there is no cash available to reimburse me for the expenses I've incurred personally. Do I have to complete a P11D for 2012/13?

A. The annual form P11D reports expenses reimbursed to, and benefits in kind made available to the employees and directors. As you haven't been paid any expenses by the company, there is nothing to report on the form P11D. If you have any benefits in kind provided by the company such as a car a P11D would be required.

Q. I've heard about the great tax breaks available under the SEIS scheme. Is this something I can use for my business?

A. The seed enterprise investment scheme (SEIS) provides investors in small companies with 50% income tax relief, and an exemption from tax for 50% of the gains they reinvest in SEIS shares (for 2013/14). However, you can't use SEIS to invest in a company you control, as the investor and his associates (basically close relatives), must not own more than 30% of the company. The trade undertaken by the company must also be less than two years old, so to use SEIS the company has to be undertaking a new venture, and be a new clean company.

If you have an idea for a new business and you are willing to involve other investors, you may be able to use SEIS to fund that business. But please talk to us first, as there are a number of trades that can't use SEIS, and other conditions to meet.

Q. I am employed by my company M Ltd, and my wife's company T Ltd. M and T have completely separate trades and operate independently. I currently take no salary from M Ltd and have a modest salary from T Ltd. However, HMRC have split my personal allowance 2/3 to the PAYE code issued to M Ltd and 1/3 to T Ltd. Can I get this changed, and if so how?

We can fix this by calling HMRC on the number shown on your PAYE code notice and ask them to change your PAYE codes. All we need is the expected level of dividends and interest or other income to be received in 2013/14.